New Delhi: Despite sharing different views with America over the issue of Iranian nuke pragramme, India seems to be taking tough decision on bilateral ties with Iran. India is going to trim oil imports from Iran. 

With the rising uncertainties of Iran on global platform, the government slows down the progress of 4,000 MW gas-based power plant project. India and Iran had agreement for the project in 2010. Iran government had promised to provide gas on cheaper rates. However, India was to set-up the project. After the sanctions on nuclear issues last year, India has stopped taking interest in the project. Sources tell that as long as situation in Iran gets sorted out the agreement is unlikely to proceed with.

According to sources in the Petroleum Ministry, buying oil from Iran has got tougher. This is reason that the government has decided to lower the oil imports from Iran by around 26 percent in the current FY. However, oil imports have been consistently declined in last two financial years.

India has imported 1.70 crore tonne crude oil in 2011-12 which is 8 percent lesser than the import a year before. But in 2012-13, Indian oil companies will be importing not more than 1.25 crore tonne crude oil. Not only public sector oil companies but Essar oil is also trimming its imports from Iran.

Sources tell that India can not overlook the state of world diplomacy. China and Russia also gives importance to their relationship with Iran but they have also downgraded the bilateral trade between the nations. Japan was having neutral stand so far but it has also cut the oil import from Iran.

Despite extending guarantee from Pakistan and Iran governments, no international financial agency has come forward to support the project. A Chinese company had agreed to support the project but it has also withdrawn from the project. These are the reasons behind India’s vigilant steps towards the oil imports from Iran.